Movie Gallery postpones payment

Dothan video-store chain Movie Gallery Inc., which has been burdened by more than $1 billion of debt, said it postponed making interest payments that are due Sept. 10.

The retailer said it told lenders about the deferred interest payments Wednesday in a regulatory filing.

Last week, the video chain said a large bondholder agreed to not to take action on a payment default until Sept.30. Last month, another set of Movie Gallery lenders extended a default waiver agreement until the same date.

Movie Gallery, which has more than 4,500 stores in the U.S. and Canada, reported losses in eight of the past nine quarters. The retailer has struggled with debt since buying Hollywood Entertainment for $1 billion in 2005.
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